Although most lenders offer their services to those who have reached the age of 20 or 21, there are lenders that also offer loans from the age of 18. The reason for this is simple – most often there is no formal and stable income at this age, positive credit history, and an understanding of how serious borrowing is.
Credit from 18 years – what to consider
A prerequisite for any loan is solvency from which it is possible to repay the loan – therefore, rarely will a lender grant a loan to a person without checking the borrower’s financial situation. And yet formal work is not the most important criterion for receiving a loan. Officially registered unemployed have the opportunity to apply for a loan if the precondition of a stable and sufficiently high income is met. Not every lender requires proof of income, but every lender checks a borrower’s credit history and credit rating and determines the prerequisites for those who can qualify for a loan. As important as credit history and credit rating is the age at which a lender grants a loan, so you should look for a lender that offers loans from the age of 18 (ātrie kredīti ar sliktu kredītvēsturi).
Demographic factors
If there have been no liabilities in the credit history, then democratic factors are taken into account: job, marital status, number of minor children in the family, age, salary, additional sources of profit – everything that indicates the financial situation. The first loan without registration, administration and interest fees can be issued only to those who have not previously had a credit obligation. It is only available to new customers and must be repaid in exactly the same amount as the loan amount (repaid as much as the borrower, kredīti parādniekiem). Although it is possible for credit card holders to borrow up to the credit limit in large banks over and over again, non-bank lenders use the first interest-free loan as an advertisement to attract new customers.
Positive credit history
Positive credit history can also be obtained if there are any liabilities (such as a credit card) whose bills are always paid on time and in full – this is a signal that all future liabilities will be fulfilled without incident, but not all banks offer a credit card at the age of 18. It should also be borne in mind that it is up to each lender to determine what is very ‘good’ and what is a ‘bad’ age or credit rating, so there will be creditors who do not lend at all and have a target audience. Therefore, it is up to each credit institution to determine what is good or bad. There are also various guidelines for assessing how harmful a future loan can be – LAFPA has created a special charter, by signing which the lender undertakes to follow good lending practices and not to lend to those who may worsen their quality of life – including those with bad credit or overdue payments.
